Tips and Tricks of Day trading or buying and selling stocks commodities and Forex and Myths and facts of stock market
Day trading for newbie is like taming a lion, besides more expensive. It is a dicey and challenging pursuit: purchasing stocks and selling them again within the same day, creating wealth off tiny fluctuations in the cost of a stock over a six-hour period. For a long time the tools of day trading weren’t to be had to the typical investor. At present with high-velocity internet connections and various strategies, anyone can day trade. If in case you have a meek mind, here is what you are able to do to restrict customary and expensive mistakes.
Prepare yourself
Make a market strategy. Day trading is a business endeavor just like every other income-producing endeavor. Hence, you should boost a business plan that entails the following:
A record of the apparatus you’re going to ought to grow to be a victorious day trader. At a minimal, you can need a quick pc and an internet connection. You could need to put money into a backup laptop just in case there is a difficulty with your primary laptop.
A list of the educational guides you’ll be able to take to obtain the suitable schooling about buying and selling. You’ll by and large wish to with some courses about how to predict trends in stock prices (that is referred to as technical evaluation). You might additionally want to take some courses distinct today buying and selling techniques and how you can be managing your cash whilst trading.
Create a trading plan. There are many buying and selling philosophies and methods for making a number of speedy bucks in the stock market. Come to a decision which process works fine for you and stick to it while you start day trading.
Assume losses. No one has a perfect batting typical in day trading. You’re going to take losses repeatedly. That’s simply a part of the equation.
Expect the sudden. Enjoying the stock market is a contact recreation. Be ready for wild swings, unforeseen dips, and inexplicable turnarounds.
Learn trading. As with the whole lot else, you will have to practice day buying and selling earlier than you do it for actual. Happily, that is handy due to contemporary technological know-how. That you could establish a fake buying and selling account and exchange stocks with obviously no spending.
Persist with your buying and selling approach. It’s easy to get caught up in feelings and a fear of loss when you begin day buying and selling and rapidly succumb to impulse buying when it seems that a stock is not moving on your course. Do not forget that you have put a pleasant deal of effort into crafting a trading strategy that has a confirmed historical past of success. Stick with that approach and go away your feelings out of the approach.
Do not alter your strategy considering it seems to “not be working anymore.” Even the pleasant procedures can endure a count of losses. Change your procedure established on fluctuations in market dynamics (for example, a transformation in market volatility) and no longer easily because you are losing cash.
Stay on prime of the news. It can be assumed that you just usually devour economic news reports so that you understand what could transfer the markets on an everyday basis.
Perform put up-alternate evaluation. After the buying and selling day is over, look back to your trades and investigate what happened with every of them. Why has been the effective trade’s moneymaking? Did you are taking losses considering that you failed to comply with your procedure competently?
Hold a buying and selling journal. A trading journal is a great option to screen your past successes and failures. Fortunately, you can get a program that makes it convenient to keep a trading journal.
Adapt to changing markets. Appreciate this: you are going to not ever wholly figure out the stock market. It is huge. It is a monster waiting to kill you. It is a consistently evolving organism, ever-changing and on no account wholly settling. Although you should under no circumstances alternate your technique just considering that you’re losing money, it’s foremost that you simply adapt your buying and selling type to the market because it changes.
The common man- what can I say will remain common man if he does not open his eyes? Why he is not aware of the great gold mine called stock market? If he does not think outside the box, well he will be inside the box forever. You need to deviate from the traditional style of investing at post offices and banks. Those will not make you rich. Your money will not work harder for you. If you stick to the old conventional ways still then you can forget the term long-term investments and high returns.
Whatever you think about stock market, do not consider stock market or trading as a gambling place or a match like 20/20. Instead consider it as platform or pitch to create wealth on a long term basis. When people or media says long term they mean or you may mistake it for years and years. Well that can be done, you can wait. But when I say long term I am talking about one year. How can we get rich in one year? How can we make a ton of money with which you can make your dreams come true.
I am trying to make a change here. Most people think that Stock market and Investing in stock market means getting robbed by exchanges. This is a myth. You totally got it wrong. Probably you might have heard stories of people losing money only. You need to understand that there are several reasons why people lose money in stock market. To make it in one sentence they know how to trade, but they do not know when to trade and when to exit.
Probably the beginners after acquiring enough knowledge should start with systematic investment plans (SIP) where the numbers of trades are very less but the return ration is high. Please check with your financial advisor or broker about this.
And you need to have patience for 12 months. But then again Rome was not built in a day
Why stock market is important today for everybody.
When you compare investing in stock market with Investing in Gold, Fixed deposits in a bank for longer terms the results are astonishing. On a long term basis it was the stock market which gave the highest profits and returns to investors. If you would’ve invested INR 100 in gold 37 years ago now your investment would have grown to INR 3200. At the same time if you would’ve invested that INR 100 in the stock market by this time your investment of INR100 would turn into INR 28,000.
That is the power of stock market.
These years the stock market has given its investor nine fold profits and returns than any other conventional investment plans like FD, post office schemes and various others.
Despite this high yield of stock market a mere 3% of the total population of India are actively involved in trading and investing in stock market. This is really sad. Most people have lots of misconceptions about stock market which prevents them from even thinking about investing in stock market other than the age old low – return conventional methods. In America 55% and In China 15% of the total population are actively involved in stock market as investors and traders. These days, without a second income in is nearly impossible to have a good living. People wait for the returns from conventional investment methods their whole life. Is it worth the wait to get the low returns?
We are too reluctant to take a little bit of risk too when it comes to high yield investments in stock market. The frequent highs and lows and fast fluctuations keep the investors away from Stock market. But if you invest in those stocks based on the sensex merited for a fixed period of time will yield you very good returns for sure.
There are two types of stock market
- Primary market
- Secondary market
The corporations who want to collect their capital from the public are the ones who are in the primary market. This is where the IPOs are issued (Initial public offerings). This is when a stock of a company is first available to the public to buy.
Even a small scale investor can be a part of primary markets to buy stocks at very affordable rates of spending few thousands and become part owners of a corporation. The mega factories and big corporations can issues tocks to the public to collect massive investments which they can sue to widen their businesses and developments. This will create more job opportunities as well as profitable returns to the investors which in turn will boost the economical growth of our country. Without a stock market none of the nations will have a healthy economical and financial stability and growth.
In India less than 2% of the total Income is invested in Stock market. In America it is 42%. People’s investment in stock market and profitability from it will boost the country’s economy and will create more and more job opportunities.
The Gold Rush
Most of our investment nature hurls to the glittering metal called Gold. Yes it is beautiful, fascinating and has been driven to the heads of our house wives that if they wear gold they are beautiful. Our investment is mainly focused on investing in Gold. This Gold is not been produced in India. India imports Gold. This creates a decrease in our foreign exchange. Investing in gold will not create a sudden and high yield returns. It required USD 35 Billion to import Gold in 2015. If that amount were invested in our stock market it would’ve become the capital of companies which will in turn boost our economy and prosperity of our country.
There will one question in your mind now. What if a recession happens? Whole economy will be destroyed. But gold will not. In that case is it Gold the best investment option?
Yes, you are right.
If a recession happens there is a chance for you to lose heavily in stock market. The answer is all about investment ration. I am not advising you to invest your whole investment in stock market. In fact invest only a fraction. People who are the experts will ask you to invest your whole wealth into stock market. Never ever do this. Never fall for false agenda.
Ex. If you have Rs. 100,000 to invest just invest Rs. 30,000 into high potential stocks. Keep 20,000 for day trading. Invest the rest Rs. 50,000 in Gold, Silver, Lead and Zinc. This is what a good investment is. If you invest the Rs. 30,000 in blue chips you will fail. Find low cost stocks which will grow exponentially in the next 12 months. Day trade blue-chip stocks with that Rs. 20,000. Take half of the daytrading profits and invest again in low cost high potential stocks. Let the investment in Gold and metals are there. In this case nothing like a recession happens you will be super rich in one year plus a stable investment in Gold to support you if something bad as a recession happens. This is the Risk we need to take. Without taking risk you cannot become rich click the below link to know more about high potential stock.
Myths and Facts
There will be hundred people to discourage you if you tell them that you are going to invest in stock market. This is because of the wrong notions people have about stock market. Here are the most important 7 misunderstandings about stock market and the real fact about those.
In stock market the right time to buy was 20 years ago. The second right time is now. Let us go back 14 years. You wanted a Royal Enfield bike in 2001. The bike would’ve cost you Rs.55, 000. Instead if you would’ve bought the shares of Eicher Motors who owns Enfield you would have got 3143 shares at Rs. 17.50 in 2001. Today one share of Eicher cost you Rs. 23,216. Your total value of share now would have been Rs.7.3 crores. 1300 fold growth. You can buy Rolls – Royce now. Here I am not asking you to wait 15 years. If you had clicked the above link you know I am talking about just one year. Sometimes it will make you wonder. The common man is willingly ignorant of this wealth creating super structure called Stock market. That is because he has some false notions about it. May be it is from his peers or from the media. Let us discuss some myths and facts about stock market. I am sure this will cool your mind about stock market.
Myth No 1- It is gambling
Some people avoid stock market because they this or heard it as gambling. If you fail in gambling you will lose money. The winner takes it all. They think their money is been gambled and looted by someone else. There is no increase in value of money here.
Reality
When you invest or buy a company’s stock you are taking part in its business. You are one of the owners of the company. When the company grows your investment will also grow. If the company incurs losses there is a chance for you to lose. The key here is to select high potential stocks. This is the best way to make good profits in a long term basis. Find stocks that may grow in one year. When you buy stocks you are making the country grow.
Myth No 2 – It is for the rich only
Some people think that you need lots of money to invest in stock market.
Reality
It is wrong. There are stocks which is less than Rs. 100. You can even buy one stock of a large cap company. Just because you lack lakhs it does not mean that you cannot invest in stock market.
Myth No 3 – There is no time for me to be a part of stock market
Some has the notion that you have to spend all your time watching the charts and be vigilant all the time from morning to night.
Reality
This is a wrong notion. Everyone can invest in stocks. If you do not have time to daytrade you can go for long term investments. You can select your own time periods from 6 months to 10 years.
We work to make money. When you invest in stock market your money will work for you and create wealth. It can give you greater rewards than any other investments or jobs.
Myth No 4 – You need to be highly educated to be in stock market
Many think that you need to be a financial guru to be a part of stock market
Reality
This is totally wrong. You just need 3 good traits to be an investor in stock market.
- Common sense
- Willingness to learn
- Attitude to spend little time
You just need to spend some time to learn the basics. You can get that from attending seminars. You tube videos etc.
Myth No 5 – You will lose money for sure
This is the thought that makes most of the people stay away from Stock market.
Reality
Price falls and stock market crash is a day to day event. There is nothing unusual about it. One steep has got a slope. Even if you lose some money probabilities of making 10 folds of that lost money is greater in stock market. Price fluctuations are a part of stock market and it does not indicate a continuous crash.
Tip- Buy stocks when it is priced less. Do not buy when the prices are higher. Select those low priced stocks for long term investments. Select blue chips for daytrading.
Myth No 6 – Your broker will do everything for you
Some people think that once they have opened an account their broker will do the A-Z things for them.
Reality
Never do this. It is your hard earned money. You are more responsible to it than your broker. There are many trading styles and financial products like Derivatives and speculations. This has to be done with utmost care. Otherwise you will lose.
Tip- Before you transact you need to understand what you are doing. If you are beginner just expect and invest for 10- 15 % growth in couple of years.
Myth No 7 – Stock market is not for me
There are too much of risk involved in stock market hence it is not for me.
Reality
Learn and earn. It is risky not to have an investment in stock market. Not the other way around. Investments are for your future. Daytrading is for today. Due to inflation and high living standards and greater financial needs it will be wrong not to depend on high yielding stocks. Your conventional investment methods will only earn you less than 10%. Here is the importance of stock market.
Tip- If you take the history of stock market for the last 30 years you can see it has grown 19%. It has doubled, than any other investment returns program. It is essential for you to have an investment in Stock market.
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I hope that I have made it simple and clear for you. For more information please read the blog. It is now or never my friend. Quit dreaming and work for your dreams. Please educate others by forwarding this article. Stock market is a collective effort, the more people the more is your chance to make good returns.
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